5 Ways to Buy Better

5 ways to buy better.

Stretch short-term budgets.

Ensure long-term savings.

The aged care industry is a highly competitive and highly regulated one. Nursing homes work hard to strike a balance between keeping costs down and providing the very best in care. The common belief is that a high standard of care must come with high running costs. it doesn’t have to be this way. With a more strategic approach to procurement, it is possible to provide more for less.

Many of our care customers have told us that before they implemented a procurement strategy, purchasing decisions were determined by three main scenarios:

1. “We’re just about to run out”

2. “There’s a sale on” or,

3. “That’s how it’s always been done.”

Taking this reactive approach to purchasing fails to take a big picture, long-term view of what is being purchased and why. The risk is that purchases may be inefficient, unnecessary and even incorrect.

Be it a butter knife or a bed, a more strategic approach to procurement will deliver better outcomes. By implementing proactive procurement over reactive purchasing, you can ensure the purchasing process is streamlined and efficient, that you are up to date with what products are available, that supplier relationships are strong and that supply chain costs are always monitored.

 Here are our five tips that may help you get better value from your expenditure.

1. Create a procurement strategy (and stick with it)

A good procurement strategy is one that takes a look at the big picture. It allows for regular audits and, where necessary, changes to what is being purchased. Procurement, instead of purchasing, will take a look at the order and determine why it’s needed and if that product is the best solution. Importantly, procurement avoids the auto-pilot situation, where orders remain the same each month because nobody has taken the time to analyse the purchase. Bulk items like toilet paper or towels often fall into this category.

For nursing homes wanting to provide the best level of care, it is also important to ensure that your suppliers are a good fit. A procurement strategy is a good way to ensure the suppliers you work with align with the vision of your organisation. So too should the products align with your organisation’s goals. Perhaps your company has a directive to move to more sustainable products, to buy local or to find new and efficient products. Unless you regularly review what’s out there, these cost-saving opportunities could be missed.

2. Don’t lose focus on the small comforts

Not all procurement is about efficiency and the cheapest option. There are some purchasing decisions that are based on different criteria. The ability of a nursing home to provide a level of comfort, warmth and even luxury delivers benefits that go far beyond the bottom line.

Investing in products that help residents feel at home can profoundly impact the quality of the experience. It can make a big difference to their families as well, and, with it, a positive impact on the overall reputation of the provider. Good quality chairs or sofas are an example of items worth investing in. They provide a comfortable addition for residents, as well as adding a touch of quality to the décor of the room. Other products that are worth investing in are those that make the experience easier for residents, such as motorised adjustable beds and chairs.

3. Sample first

Taste tests aren’t just for supermarkets! Many of our clients have made the most of trying before buying, thanks to our sample offer. We understand that when planning a purchase for elderly care, there needs to be a high level of confidence that the item will meet the special needs of residents.

While it’s easy to see a product online or in a catalogue and quickly make a purchase, the reality of how this product works may only become apparent after it has been put to work. Sampling is a good way to see how it will stand up for durability, comfort and most importantly, safety. If you want to take some of our products for a test drive, we’re happy to help.

4. Buyer beware

Special offers, price-slashing and sales that are too good to be true are often exactly that—too good to be true. A good procurement strategy ensures you have established a good purchasing relationship with your supplier and your prices are such that you don’t need to wait for the next sale or special to come along. The adrenalin rush of one-off sale events may be good for some, but these impulsive purchases often deliver far lower ROI than expected.

With a good procurement strategy and solid supplier relationships in place, you can avoid the temptation of ‘special deals’. Take for example the ‘bait and switch’, a morally questionable tactic that lures buyers in by advertising low prices only for them to be told the item is no longer available (but another high price item is available instead). The tactic is considered unethical but is something that purchasers may have to contend with if they don’t have trustworthy relationships with the organisations they are purchasing from.

A good supply partner shouldn’t have to resort to these sorts of tactics. And that’s because a long-term mutually beneficial relationship is more valuable than any short-term sales wins. 

5. Invest in quality

Finding and purchasing quality is a fundamental aspect of any good procurement strategy. Whether it’s in your business or that of the supplier’s, quality is about exceeding customer expectations consistently. This consistency flows through to improved reputation, which leads to better revenue operational efficiency and employee satisfaction.

Sometimes organisations learn the benefit of adopting such a culture the hard way. Failing to recognise the importance of quality goods purchased from quality suppliers has meant even higher costs, be it from product recalls, warranty issues, repurchasing and, of course, a blow to the reputation.

Elevating your approach from ‘purchasing’ to ‘procurement’ is a strong strategic move for organisations looking to maintain reputation, efficiency and resilience.

A procurement strategy helps implement a culture of long-term value and quality. It ensures you can withstand unexpected situations (like Covid) as well as leverage growth and change. If quality and reputation are a priority, making procurement a strategy rather than a function will put you in a much stronger position.